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GENERAL PROVISIONS

the

offeror/quoter) any

fee,

commission, percentage, or brokerage fee contingent upon or resulting from the award of this contract; and agrees to furnish information relating to (a) and (b) above, as requested by the Contracting officer. interpretation of representation, including the term "bona employee", see Code of Federal Regulations, Title 41, Subpart 1-1:5.)

(For

the fide

If the offeror/quoter, by checking the appropriate box provided therefor, has represented that he has employed or retained a company or person (other than a full-time bona fide employee working solely for the offeror/quoter) to solicit or secure this contract, or that he has paid or agreed to pay any fee, commission, percentage, or brokerage fee to any company or person contingent upon or resulting from the award of this contract, he shall furnish, in duplicate, a complete Standard Form 119, Contractor's Statement of Contingent or other Fees. If offeror/quoter has previously furnished a completed Standard Form 119 to the office issuing this solicitation, he may accompany his proposal/quotation with a signed statement (a) indicating when such completed form was previously furnished, (b) identifying by number the previous solicitation or contract, if any, in connection with which such form was submitted, and (c) representing that the statement form is applicable to this

in

such proposal/quotation.

the

prospective

1.506-2 Interpretation of the Representation. (a) For the purpose of the representation and agreement required from contractor, as described in 1.506-1, the definition of "bona fide employee" is as specified in 1.505-3.

(b) The fact that the prospective contractor retains a person who does not devote his full time solely to the prospective contractor does not

CFR TITLE 41 CHAPTER 18

CONTINGENT OR OTHER FEES

necessarily mean that the relationship involved is in violation of the covenant against contingent fees or that there is any stigma attached to the contractor-agent relationship. It does mean, however, that the prospective contractor must fill out the representation in the affirmative and, as required, furnish information with respect to such employment or retainer.

(c) If the representation would otherwise be answered in the affirmative, the fact that the person employed or retained by the bidder or contractor is an attorney, or a public relations consultant, or has any other special or professional title, does not permit answering in the negative.

1.506-3 Exceptions. The inquiry and agreement specified in 1.50 6-1 need not be made and submission of Standard Form 119 need not be requested in connection with the following:

(i) any advertised contract in which the aggregate amount involved does not exceed $25,000; (ii) any negotiated contract in which the aggregate amount involved does not exceed $10,000; (iii) any negotiated contract for perishable subsistence supplies in which the aggregate amount involved does not exceed $25,000;

(iv) any contract for services which are required to be performed by an individua 1 contractor in person under Government supervision and paid for on a time basis;

(v) any contract for public utility services furnished by a public utility company where the utility company's rates for the services furnished are subject to regulation by Federal, State, or other regulatory body and the public utility company is the sole source of supply; and

(vi) contracts to be made in foreign countries. 1.507 (Reserved)

1.508 Enforcement.

1.508-1

take the

General. The contracting officer shall necessary

steps to ensure that the

NASA PROCUREMENT REGULATION

GENERAL PROVISIONS

indicated

proposed contractor has furnished a representation (negative or affirmative) and agreement required by 1.506-1.

(a) If the indicated proposed contractor makes such representation in the negative, such representation may be accepted and award made or offer accepted.

(b) If the indicated or proposed contractor makes such representation in the affirmative, a completed Standard Form 119, in duplicate, shall be requested from him. In the case of formal advertising, the making of an award in accordance with the procedures set forth in this Regulation need not be delayed pending receipt of the form. In the case of negotiation, if the proposed contractor makes such representation in the affirmative, he shall be required to file a completed Standard Form 119, or the statement in lieu of the form, prior to acceptance of the offer or execution of the contract, unless the Procurement officer considers that the interest of the Government will be prejudiced by the suspension of negotiations pending receipt and consideration of an executed Standard Form 119. (c) If the indicated proposed contractor fails to furnish the representation and agreement as required by 1.506-1, such failure shall be considered a minor informa li ty and, prior to award, he shall be afforded a further opportunity to furnish the representation and agreement. A refusal or failure to furnish the representation and agreement after such opportunity has been afforded shall require rejection of the bid or offer.

1.508-2 Failure or Refusal to Furnish Standard Form 119. If the successful bidder or offeror or the contractor, upon request, fails or refuses to furnish a completed Standard Form 119, or a statement in lieu thereof, as provided in 1.506-1, one of the following actions shall be taken:

(i) if an award has not been made or bid or offer has not been accepted, the matter shall be

CFR TITLE 41 CHAPTER 18

CONTINGENT OR OTHER FEES

referred to the Procurement Officer for a determination as to whether the bid or of fer should be rejected;

(ii) if the contract has been awarded or bid or offer accepted, the matter shall be referred to the Assistant Administrator for Procurement, supported by a statement and summary of all pertinent facts and appropriate recommendations, for a determination as to what actions should be taken, such as making an independent investigation or considering the eligibility of the contractor as a future contractor.

1.508-3 Misrepresentations or Violations of the Covenant Against Contingent Fees. In case of misrepresentation concerning contingent fees, or violation or breach of the covenant against contingent fees, or some other relevant impropriety, one or more of the following actions shall be taken:

(i) if an award has not been made or bid or an offer has not been accepted, the matter shall be referred to the Procurement officer for a determination as to whether the bid or offer should be rejected;

(ii) if an award has been made or bid or offer has been accepted, the matter shall be referred to the Assistant Administrator for Procurement, supported by a statement and summary of all pertinent facts and appropriate recommendations, for a determination as to what actions should be taken, such as:

(A) enforcing the covenant in accordance with its terms; that is, as the best interest of the Government may appear, annul the contract without liability or recover the full amount of the fee involved;

(B) considering the eligibility of the contractor as a future contractor; or

(C) referring the ca se to the Department of Justice. (See 1.111.)

1.509 Preservation of Records.

NASA PROCUREMENT REGULATION

GENERAL PROVISIONS

(a) Each contracting officer shall preserve as a permanent record for enforcement or report purposes the original executed copy of any representation and completed Standard Form 119, or statement in lieu of form, together with a record of any other pertinent data, including data as to action taken. There shall be no regular retirement of any Standard Form 119 maintained in this record by any procuring activity. However, in any case where the receipt of a new Standard Form 119 makes previously received information obsolete, the obsolete information may be destroyed.

(b) The second copy of Standard Form 119, or statement in lieu of form, shall be filed with and shall remain a part of the contract file.

CFR TITLE 41 CHAPTER 18

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